I need only the answers please try to do your best yesterday someone give all incorrect answers. i have only two hours for complete this test. Only two hours. ATTACHMENT PREVIEW Download attachment ACCOUNTING TEST.docx Which of the following budgets is directly affected by changes in planned conversion costs? The sales budget The cash receipts budget The general and administrative budget The manufacturing cost budget Question 6 The Mighty Manufacturing Company expects to incur the following per unit costs for 1,000 units of production: Direct materials Direct labor Variable overhead Fixed overhead 2 lb. @ $40 = $80 1 hr. @ $48= $48 75% of direct labor costs 50% of direct labor costs What is the total cost reported in the manufacturing cost budget? $128,0 00 $188,0 00 $ 94,000 $ 80,000 Thomas Company has a sales budget for next month of $1,000,000. Cost of goods sold is expected to be 45 percent of sales. All goods are paid for in the month following purchase. The beginning inventory of merchandise is $20,000, and an ending inventory of $24,000 is desired. Beginning accounts payable is $152,000. For Thomas Company, the ending accounts payable should be: $156,0 00 $454,0 00 $356,0 00 $404,0 00 Which of the following amounts would be classified as part of the disinvestment phase for a project? Depreciation Collections of accounts receivable from sales Expenditure to return plant site to its preproject condition Retiring bonds issues to finance the project Boulder Milling is evaluating a proposal to invest in a new piece of equipment costing $110,000 with the following annual cash flows over the equipment’s 4-year useful life: Cash revenues $95,000 Cash expenses (52,000) Depreciation expenses (straight-line) (15,000) Income provided from equipment $28,000 Cost of capital 14 percent The investment’s payback period is (rounded to two decimal places): 3.9 1 3.3 3 2.3 7 2.5 6 Question 16 Which of the following statements about segment reporting is not true? Segment reports are income statements that show operating results for portions of the business. Product segment reports are designed to show the performance of product lines of a business. Product segment reports are not really segment reports. Statements A and B are correct. Question 17 Information for Tube division is as follows: Net earnings for division $40,000 Asset base for division $100,000 Target rate of return 16% Operating income margin 12% Weighted average cost of capital 8% What is Tube’s residual income? $26,0 00 $24,0 00 $32,0 00 $95,2 00 Plainfield Company has two divisions: the Mixing Division and Bottling Division. The Mixing Division sells beverage mix to the Bottling Division. Standard costs for the Mixing Division are as follows: Direct materials $4.00 per gallon Direct labor 1.60 per gallon The Mixing Division uses the following predetermined overhead rate: Variable overhead $2.40 per gallon Fixed overhead 1.60 per gallon Total $4.00 per gallon What is the transfer price for the beverage mix per gallon based on standard absorption cost plus a markup of 30 percent? $ 10.75 $ 12.48 $ 17.50 $ 9.50 Homer Glen Division has the capacity to make 3,000 units of an intermediate good that is sold both internally and on the open market for a price of $63 each. To make the product, Homer Glen incurs $14 of variable cost per unit and $24 of fixed costs per unit. What is the minimum price Homer Glen would accept for an internal transfer of 1,000 units of the product if the division is operating at 100% capacity? $14.00 each $38.00 each $63.00 each $60.00 each Bosworth Boots, Inc. is considering the production of a new line of boots. Based on preliminary market research, management has decided that each pair of boots should be priced at $225. Furthermore, management believes that the profit margin should be 30 percent of sales revenue. What is the target cost? $150. 75 $225. 50 $260. 00 $157. 50 Which of the following statements describes a legitimate disadvantage of cost-